Tax guide6 min read · Updated October 8, 2026

Quarterly Estimated Taxes: Who Pays and When

Estimated taxes are how you pay income tax on money that has no withholding, such as freelance pay, rental income or investment gains. You send in payments during the year instead of one bill at filing time.

By Amara Taylor

2026 payment due dates

These dates come from the 2026 Form 1040-ES. The IRS notes that if a due date falls on a weekend or legal holiday, the payment is due the next business day. The January payment is not required if you file your 2026 return by February 1, 2027 and pay the full balance with it. Dates for 2027 will be on the 2027 Form 1040-ES.

Who needs to pay

The IRS says individuals, including sole proprietors, partners and S corporation shareholders, generally must make estimated payments if they expect to owe $1,000 or more with their return. Freelancers and contractors fall into this group because nobody withholds tax from their client payments. So does anyone with large untaxed income, such as interest, dividends or capital gains, that withholding does not cover.

You do not need to pay if you had no tax liability last year, were a U.S. citizen or resident for the whole year and your prior tax year covered 12 months.

How much to pay: the safe harbors

You avoid the underpayment penalty if your payments and withholding add up to the smaller of two amounts.

• 90% of the tax on this year’s return. Use this one when this year’s tax is likely to be lower than last year’s.
• 100% of the tax on last year’s return, if last year covered 12 months. If your adjusted gross income last year was above $150,000 ($75,000 if married filing separately), the Form 1040-ES instructions raise this to 110%.

For example, if last year’s return showed $9,000 of tax and your income was under the $150,000 line, paying $9,000 across the year, such as four payments of $2,250, meets the second test. You may still owe more when you file, but the penalty is the part you avoid.

You do not have to pay in four equal chunks. You can pay weekly, biweekly or monthly, as long as enough has been paid by the end of each quarter.

How to pay

Pay online at IRS.gov/payments or through your IRS online account, by phone or in the IRS app, or mail a check with a Form 1040-ES voucher. Self-employed people also owe self-employment tax, and the same payments cover both it and income tax.

If you underpay

The penalty is figured on Form 2210. The IRS can waive it for a casualty, disaster or other unusual circumstance, or if you retired after age 62 or became disabled and the shortfall was due to reasonable cause.

This guide is general information, not tax advice. Sources: IRS estimated taxes, IRS Form 1040-ES (2026), IRS Topic 306, Penalty for underpayment of estimated tax. Dates and thresholds last checked October 8, 2026. See our editorial standards.

Last updated: October 8, 2026 · Written by Amara Taylor, Content Lead, Anchor AI Tools.